Page 72 - Budgeting for Managers

4

Creating a

Production

Budget

The great cycle of the ages is renewed.
—Virgil
his chapter will help you build a budget for production work,
Tthat is, for ongoing business operations. Each year, the
cycle of business repeats, but with changes. The challenge of
budgeting for a department is to figure out what will change and
what will stay the same. With past figures in hand, we’re ready
to put together our best estimate of what the next year (or
months) will look like. Some of the methods also apply to long-
term budgets; we’ll note which methods are suitable. We will
discuss:
•Methods for estimating income and expenses
• How to put your budget together, step by step
•A sample budget for a production group or manufactur-
ing environment

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